The Ontario Teachers’ Pension Plan is acquiring a 40 per cent stake in Caruna, Finland’s largest electricity supplier.
The pension will acquire a 20 per cent stake in the utility from First Sentier Investors and in a separate transaction, the Ontario Teachers’ and investment firm KKR & Co. Inc. will jointly acquire a 40 per cent holding from the Ontario Municipal Employees Retirement System. Upon closing, the Ontario Teachers’ and KKR will each own 40 per cent of Caruna, according to a press release.
“The electrification of society and the increase of renewable energy production – key elements of Finland’s decarbonization plans – require a strong and smart electricity network,” said Dale Burgess, senior managing director of infrastructure and natural resources at the Ontario Teachers’, in the release. “We’re convinced that Caruna is well-placed to build a smart and weatherproof electricity network for its customers that will meet growing consumption needs while helping transition to a low-carbon economy. We’re committed to investing in Caruna to achieve these goals.”
In other investment news, the Caisse de dépôt et placement du Québec is investing up to $408 million in a telecommunications joint venture in Brazil.
The partnership with investment firm Telefónica Group will see the construction, development and operation of a neutral and independent fibre-optics wholesale network in Brazil, with each investor holding a 50 per cent stake, according to a press release.
“This transaction is an opportunity to further diversify our infrastructure portfolio and demonstrates [the Caisse’s] ongoing interest for Brazil and the wider Latin America region, where we see opportunities in a variety of sectors,” said Emmanuel Jaclot, executive vice-president and head of infrastructure at the Caisse, in the release.
In a separate transaction, Caisse subsidiary and global real estate investor Ivanhoé Cambridge is partnering with India-based Embassy Group to launch an investment platform focused on office business parks in India.
The platform will have an investment capacity of US$500 million with Ivanhoé Cambridge and Embassy investing in an 80:20 ratio, according to a press release, which noted the platform will initially focus on the Southern Indian markets of Bengaluru and Chennai.
“This new venture with Embassy will allow us to reinforce our presence in India, a key country in our diversification strategy in Asia,” said Karim Habra, head of Europe and Asia-Pacific at Ivanhoé Cambridge, in the release. “Over the last couple of decades, several global corporations have acknowledged India as a scalable global innovation hub catalyzed by a deep, world-class talent pool. We anticipate this trend to accelerate, thus supporting long term demand for sustainable, class A offices in mixed-use campus environments.”
And the Investment Management Corp. of Ontario has closed its co-investment with strategic partner Kohlberg & Co. in the acquisition of Area Wide Protective Inc., a U.S.-based provider of temporary traffic safety management services.
This is the IMCO’s second co-investment alongside Kohlberg since entering a strategic partnership with the firm in 2020, according to a press release, which noted that terms of the transaction were not disclosed.
“[The] IMCO’s co-investment with Kohlberg demonstrates the complementary nature of our strategic partnership,” said Craig Ferguson, managing director of private equity at the IMCO, in the release. “Kohlberg’s proven track record in the infrastructure services space, together with [the] IMCO’s desired exposure to the sector’s strong and stable growth proved successful in the acquisition of AWP.”